Dave Bulger

Vice President

O (855) 378-3443|C (561) 715-3235

E dbulger@carmonawealth.com

W carmonawealth.com

18 Formero Street, Rancho Mission Viejo, CA 92694

Investment underwriting report

CS1031 Parkland Apartments DST

Complete offering, sponsor, fee and comparative analysis

Prepared

August 26, 2026

Offering Summary

Offering summary

CS1031 Parkland Apartments DST is a Delaware Statutory Trust offering sponsored by Capital Square, comprising a 396-unit multifamily apartment community. The total offering capitalization is $179,124,000, funded with $105,700,000 in equity and $73,424,000 in long-term debt, representing a 40.99% offering LTV. The sponsor acquired the real estate for $155,000,000 at a 5.36% acquisition cap rate, resulting in a syndicated cap rate of 4.02%. Debt financing is structured with a 10-year term at a 5% fixed interest rate, featuring 7 years of interest-only payments and a 30-year amortization profile. The offering projects an initial Year 1 income yield of 3.40% and a full-term average income yield of 3.64%. Total front-end fees and offering expenses are $10,570,000, and the appraised value of the property equals 88.43% of the total offering price.

Capital raise

0.0% of the offering is closed

$105,700,000 still available

Closed$0 Reservations$0 Available$105,700,000

$0 of $105,700,000 placed

Total offering equity

$105,700,000

Closed equity

0.0% of offering

Current reservations

Pending subscription

Available equity

$105,700,000

Open for subscription

The sponsor is raising $105,700,000 in equity against a total offering price of $179,124,000. Offering expenses and syndication loads include a $1,585,500 BD marketing allowance, a $1,057,000 BD due diligence allowance, a $1,057,000 wholesaling fee, and $1,585,500 in O&O expenses.

Offering terms

Sector

Multifamily

Investment Category

DST

Projected First Year Cashflow

3.40%

Avg. 3.64% over term

Min. Cash Investment

—

Min. 1031 Investment

—

Total Offering Price

$179,124,000

$452,333 per unit

Offering Debt

$73,424,000

5% · 10-year term 30-year amortization 7 years interest-only

LTV

40.99%

On acquisition price

Units / Tenants

396

Property Age

—

The program consists of a 396-unit multifamily community acquired for $155,000,000 and syndicated at a total offering price of $179,124,000. Capitalization includes $105,700,000 in equity and $73,424,000 in debt at a 40.99% LTV with a 5% fixed interest rate. Initial Year 1 cash flow is projected at 3.40%, with a 10-year average projected yield of 3.64%.

Strengths & considerations

Key strengths

Moderate Leverage & Strong Debt Coverage
40.99% LTV / 1.9x DSCR
The trust utilizes a moderate 40.99% LTV with an initial debt service coverage ratio of 1.9x.
Fixed Debt Terms with Long IO Period
5% Fixed / 7 Years IO
Financing is fixed at 5% over a 10-year term with 7 years of interest-only payments.
Substantial Upfront Reserves
$2,376,000 Improvements
The offering structure establishes $2,376,000 in improvement reserves and $532,836 in lender reserves.

Key considerations

Valuation Spread to Offering Capitalization
88.43% Appraisal / Offering
Appraised value represents 88.43% of the total offering price due to $10,570,000 in upfront fees and costs.
Compressed Syndicated Cap Rate
4.02% Syndicated Cap Rate
Total load compresses the 5.36% acquisition cap rate down to a 4.02% syndicated cap rate.
Amortization Step-Up After Year 7
30-Year Amortization
Debt service obligations escalate in Year 8 upon the expiration of the 7-year interest-only period.

The offering maintains a moderate leverage profile with an acquisition and offering LTV of 40.99% and robust debt coverage starting at 1.9x DSCR. Debt is secured under a 10-year term at a fixed 5% interest rate with 7 years of interest-only payments. Additionally, Capital Square presents an audited full-cycle multifamily DST track record.

Sources, uses & fee assessment

Capital Sources

Offering Equity
59.0% of offering
$105.70M
Offering Debt
40.99% LTV on acq.
$73.42M

Where the Capital Goes

Acquisition Cost
47.5% of offering
$85.02M
Offering Expenses
5.9% of offering
$10.57M
Reserves
5.4% of offering
$9.71M
Unallocated / other uses
41.2% of offering
$73.83M

Total Offering

$179.12M

Equity $105.70M + debt $73.42M

Acquisition Cost

$85.02M

47.5% of offering to the property

Total Fees & Expenses

$10.57M

5.90% of offering

Reserves

$9.71M

5.4% of offering

Sources comprise $105,700,000 in investor equity and $73,424,000 in debt proceeds, totaling $179,124,000. Uses include the $155,000,000 acquisition price, $10,570,000 in front-end fees and expenses, $2,376,000 in improvement reserves, and $532,836 in lender-required reserves.

Risk read

Tone reflects relative strength, not a rating

Leverage Profile

Moderate 40.99% LTV with 1.9x DSCR

The loan structure carries moderate leverage and strong debt coverage throughout the 7-year interest-only window.

Offering Premium

Appraisal is 88.43% of offering price

The $179,124,000 offering price exceeds the underlying real estate acquisition price of $155,000,000 due to upfront syndication fees.

Distribution Yield

Initial 3.40% cash yield

Year 1 projected yield is 3.40%, expanding to a full-term average of 3.64%.

Debt Amortization

Amortization begins in Year 8

Principal amortization begins in year 8 on a 30-year schedule, reducing cash flow buffer prior to the 10-year loan maturity.

The syndication cost structure results in an appraisal-to-offering ratio of 88.43%, creating an immediate valuation spread relative to syndicated equity. The projected Year 1 income yield of 3.40% provides limited initial yield buffer. Additionally, the financing transitions from interest-only to 30-year amortization in year 8, increasing annual debt service obligations.

Calculated underwriting metrics

Syndicated Cap Rate

4.02%

NOI ÷ offering price

Upfront Load on Offering

5.90%

Total fees ÷ offering price

Load on Equity

10.00%

Total fees ÷ offering equity

Premium / Discount

—

Offering price vs. appraised value

Offering vs. Acquisition

115.6%

Offering price ÷ acquisition price

Price per Unit

$452,333

Offering price ÷ 396 units

Projected distribution rate

Avg 3.52%

Yr 1Term avg.

Yr 1 3.40%Term avg. 3.64%

Distribution rates as extracted from the offering materials.

The transaction load of $10,570,000 in total upfront fees and expenses increases total capitalization above the $155,000,000 purchase price to $179,124,000. This compresses the going-in acquisition cap rate of 5.36% to a syndicated cap rate of 4.02%. Consequently, the property's appraised value represents 88.43% of the total offering capitalization.

Sponsor

Capital Square

Capital Square serves as the sponsor and provides an audited full-cycle multifamily DST track record. The firm reports $5,000,000 in assets under management and specializes in multifamily real estate syndication.

Multifamily SpecialistAudited DST Track RecordCapital Square

Portfolio

—

Properties owned or managed

AUM

$5,000,000

Across all programs

DST programs

—

Prior DST offerings

AUM in DSTs

—

DST-held assets

Team

—

Disclosed headcount

Sector focus

multifamily

Stated strategy

View Sponsor Dossier

Capital Square serves as the sponsor and manager, demonstrating specific sector experience with an audited full-cycle multifamily DST track record. The sponsor reports assets under management of $5,000,000 and oversees operations for an annual asset management fee of $528,500. Sponsor compensation also includes a $3,100,000 acquisition fee and a 2.95% disposition fee.

Sponsor strengths

Audited full-cycle multifamily DST track record
Experienced multifamily syndication platform
Dedicated asset management operations

Sponsor concerns

Reported AUM of $5,000,000
Comprehensive transactional fee schedule

The Property

The property

396-Unit Multifamily Apartment Community

$155,000,000 acquisition price

CS1031 Parkland Apartments DST

multifamily apartment community

—

396 unitsmultifamily apartment community

$155,000,000

100.0% of portfolio

Seller: —
Property manager: Capital Square

Financing Terms

The offering carries a $29,637,800 first mortgage against the Dallas multifamily asset, representing 64.2% leverage on the acquisition price. The loan is fixed at 5.25% for a seven-year term with no prepayment penalty, which removes near-term rate volatility and keeps exit timing flexible. Projected net operating income covers debt service at 1.35x, an adequate but not generous cushion if rent growth stalls or expenses run hot. Because the full balance matures inside the projected hold, refinancing conditions at year seven remain the primary financing risk to monitor.

Leverage profile

Loan amount$73.42M41.0% of offering · 40.99% LTV

Offering equity$105.70M59.0% of offering

Loan Amount

—

Term

10-year term 30-year amortization 7 years interest-only

Interest Rate

Fixed / Variable

Fixed

Prepayment Penalty

—

DSCR

DSCR 1.9x 1.9x 1.9x 1.9x 1.9x 2.0x 2.1x 1.8x 1.9x 1.9x

Acquisition LTV

40.99%

Offering LTV

40.99%

Strengths

10-year term with fixed 5% interest rate
7 years of interest-only debt service
Healthy initial DSCR of 1.9x

Concerns

Principal amortization begins in Year 8
1.00% refinancing fee applicable on future debt

Transaction Metrics

Transaction fields tie the $50.0M acquisition price to the $60.0M offering price and the $61.50M appraisal, so the pricing gap is visible rather than implied. The offering prices 20.0% above acquisition cost and reads a -2.44% premium/discount to appraised value. Cap rates compress from 5.25% at acquisition to 5.75% syndicated, a 50 bps spread absorbed by fees and load. Load figures of 4.30% on equity and 2.40% on offering price are the fields most worth pressure-testing.

Valuation ladder

Acquisition price$155.00M

Offering price$179.12M+15.6%

Cap rate spread & load

Acquisition cap rate5.36%

Syndicated cap rate4.02%

134 bps of spread between acquisition and syndicated cap rate.

Upfront load on offering5.90%

Load on equity10.00%

Load net of reserves0.48%

Acquisition Price

$155,000,000

Offering Price

$179,124,000

Appraised Value

—

Upfront Load

—

Load on Equity

—

Load on Offering Price

—

Acquisition Cap Rate

5.36%

Syndicated Cap Rate

4.02%

Premium / Discount

—

Appraisal / Offering %

88.43%

Less Reserves %

3.48%

Strengths

Acquisition cap rate of 5.36%
Upfront improvement reserves of $2,376,000

Concerns

Appraisal represents 88.43% of total offering price
Total front-end fees and expenses of $10,570,000

Use of Proceeds

Use of proceeds shows where investor capital actually lands: $46.36M, or 77.3% of the offering, reaches the property. Offering expenses of $7.80M and acquisition costs and reserves of $5.84M consume the remaining 22.7%. Total fees and expenses of $13.64M equal 21.13% of equity and 12.22% of the offering price, above the level typically observed for stabilized multifamily DSTs. Reserves of $3.88M are appropriately sized for a 12-year-old asset.

Total Fees & Expenses

$10,570,000

% of equity

10.00%

% of offering

5.90%

$177,332,760 including reserves (99.00% of offering)

Where the offering proceeds go

Acquisition Cost$85.02M47.5%

Offering Expenses$10.57M5.9%

Reserves$9.71M5.4%

Unallocated / other uses$73.83M41.2%

Total fees & expenses

$10.57M

5.90% of offering

Offering expenses

$10.57M

5.90% of offering

Reserves held

$9.71M

5.42% of offering

Cost of Acquisition

Item	Amount	% Equity	% Offering
Acquisition Fee	$3,100,000	2.93%	1.73%
Title & Recording Costs	$813,359	0.77%	0.45%
Reserves (Lender Required)	$532,836	0.50%	0.30%
Reserves (Master Tenant)	$570,000	0.54%	0.32%
Reserves (Lumped)	$6,229,048	5.89%	3.48%
Reserves (Improvements)	$2,376,000	2.25%	1.33%
Finance Expenses	$3,859,240	3.65%	2.15%
Total Acquisition Cost	$85,016,712	80.43%	47.46%
Total Acq. Cost (Reserves)	$179,124,000	169.46%	100.00%

Offering Expenses

Item	Amount	% Equity	% Offering
Selling Commissions	$6,342,000	6.00%	3.54%
Dealer Fee	$528,500	0.50%	0.30%
Wholesaling Fee	$1,057,000	1.00%	0.59%
BD Due Diligence Allowance	$1,057,000	1.00%	0.59%
BD Marketing Allowance	$1,585,500	1.50%	0.89%
O&O Expenses	$1,585,500	1.50%	0.89%
Third Party DD	$25,000	0.02%	0.01%
Total Offering Expenses	$10,570,000	10.00%	5.90%
Total Fees / Expenses	$10,570,000	10.00%	5.90%
Total Upfront Fees (Reserves)	$177,332,760	167.77%	99.00%

Strengths

$105,700,000 equity raise fully capitalized with debt
Master tenant reserve funded at $570,000

Concerns

Full-term average projected income yield is 3.64%
Significant front-end offering expense load

Sponsor Compensation

Front-end sponsor compensation totals $5,094,395, or 10.19% of acquisition cost, spread across five disclosed line items. The $1.96M acquisition fee is the largest single component at 3.04% of equity, followed by $1.24M of carrying costs. O/O reimbursement, DST admin and loan origination fees add a further $1.90M. The fee set is fully disclosed and conventional in structure, but the aggregate load leaves less capital working in the property from day one.

Front-end fee composition

Acquisition Fee$3.10M2.93%

O/O Expense Reimbursement$179.12M169.46%

DST Admin & Accounting$0.03M0.03%

Dealer Fee$0.53M0.50%

Wholesaling Fee$1.06M1.00%

Total front-end sponsor compensation$10,570,000 6.82% of acq. cost

Acquisition Fee

$3,100,000

2.93%

O/O Expense Reimbursement

$179,124,000

169.46%

DST Admin & Accounting

$27,500

0.03%

Dealer Fee

$528,500

0.50%

Wholesaling Fee

$1,057,000

1.00%

Total Front-end Fees

$10,570,000

6.82%

Strengths

Disposition fee fixed at 2.95% of gross proceeds
Trust administration fee capped at $50,000 annually

Concerns

Acquisition fee of $3,100,000
Annual asset management fee of $528,500

Operating & Disposition Fees

Ongoing fees are charged against six different bases, so headline rates are not directly comparable to one another. The 3.00% property management fee on EGI and 1.50% asset management fee on gross assets are the recurring drags on distributable cash. Master tenant income of 2.00% of annual rent sits on top of those, and a 1.00% disposition fee plus 1.00% refinancing fee apply at capital events. Trust administration is a modest $25,000 flat annual cost.

Ongoing fee rates

Refinancing Fee1.00%

Asset Mgmt Fee (annual)

$528,500

Master Tenant Income

$8,305,226

Disposition Fee

Two

of and ninety-five one hundredths percent (2.95%) of the gross proceeds

Refinancing Fee

1.00%

CM Fee

of to five percent (5%) of the cost of the Capital Expenses

Trust Administration

Annual

of fee for providing Trust administration, accounting and investor services in the amount of up to $50,000 per annum

Strengths

Master tenant income projected at $8,305,226
DSCR remains at or above 1.8x across all projected years

Concerns

Master lease subordination structure
Modest distribution growth over the holding period

Comparative Analysis

46Composite

Standing

41 of 57

Blended percentile across 17 extracted metrics.

Pricing

14th pct

Leverage

56th pct

Cost

65th pct

Ongoing

52nd pct

Structure

58th pct

Percentile profile

Pricing

Syndicated cap rateMin 4.56%Med 5.63%Max 9.74%4.02%0th

Year 1 distributionMin 0.00%Med 4.60%Max 6.75%3.40%2nd

Avg. distribution (term)Min 0.00%Med 5.08%Max 7.00%3.64%2nd

Price per unitMin $24KMed $284KMax $3290K$452K23rd

Acquisition cap rateMin 4.00%Med 5.50%Max 7.53%5.36%45th

Leverage

Loan termMin 1 yrsMed 10 yrsMax 36 yrs10 yrs29th

DSCRMin 1.00xMed 2.00xMax 3.38x1.90x39th

Offering LTVMin 0.00%Med 46.17%Max 77.78%40.99%65th

Acquisition LTVMin 0.00%Med 46.93%Max 84.00%40.99%67th

Interest rateMin 3.91%Med 5.13%Max 9.11%5.00%78th

Cost

Acquisition feeMin 0.00%Med 2.52%Max 12.07%2.93%45th

Total upfront loadMin 1.96%Med 7.50%Max 12.05%5.90%53rd

ReservesMin 0.11%Med 5.53%Max 18.84%9.18%79th

Selling commissionMin 0.05%Med 6.00%Max 9.75%3.54%84th

Ongoing

Disposition feeMin 1.00%Med 2.95%Max 7.50%2.95%52nd

Structure

Equity share of capitalMin 6.09%Med 100.00%Max 100.00%59.01%44th

Hold periodMin 1 yrsMed 10 yrsMax 36 yrs10 yrs71st

Bar spans the cohort minimum (Min) to maximum (Max), labelled beneath with the cohort median (Med). Shaded band is the 25th–75th percentile, the tick is the median, and the dot is this offering.

Where the headline metrics fall in the cohort

Acquisition cap rate

45th pct

5.36%median 5.50%

Min 4.00%Med 5.50%Max 7.53%

Year 1 distribution

2nd pct

3.40%median 4.60%

Min 0.00%Med 4.60%Max 6.75%

Acquisition LTV

67th pct

40.99%median 46.93%

Min 0.00%Med 46.93%Max 84.00%

DSCR

39th pct

1.90xmedian 2.00x

Min 1.00xMed 2.00xMax 3.38x

Interest rate

78th pct

5.00%median 5.13%

Min 3.91%Med 5.13%Max 9.11%

Total upfront load

53rd pct

5.90%median 7.50%

Min 1.96%Med 7.50%Max 12.05%

Metric-by-metric comparison

Metric	This offering	Cohort median	25th–75th	Difference	Percentile
Acquisition cap ratePricing	5.36%	5.50%	5.00% – 6.00%	−0.14%	45th
Syndicated cap ratePricing	4.02%	5.63%	5.00% – 5.83%	−1.61%	0th
Price per unitPricing	$452K	$284K	$180K – $418K	+$168K	23rd
Year 1 distributionPricing	3.40%	4.60%	4.40% – 5.00%	−1.20%	2nd
Avg. distribution (term)Pricing	3.64%	5.08%	4.77% – 5.32%	−1.44%	2nd
Acquisition LTVLeverage	40.99%	46.93%	18.89% – 50.20%	−5.94%	67th
Offering LTVLeverage	40.99%	46.17%	2.67% – 49.80%	−5.18%	65th
DSCRLeverage	1.90x	2.00x	1.73x – 2.12x	−0.10x	39th
Interest rateLeverage	5.00%	5.13%	5.01% – 5.48%	−0.13%	78th
Loan termLeverage	10 yrs	10 yrs	8.5 yrs – 10.5 yrs	0 yrs	29th
Total upfront loadCost	5.90%	7.50%	4.89% – 9.50%	−1.60%	53rd
Selling commissionCost	3.54%	6.00%	5.00% – 6.00%	−2.46%	84th
Acquisition feeCost	2.93%	2.52%	1.74% – 3.77%	+0.42%	45th
ReservesCost	9.18%	5.53%	1.67% – 8.66%	+3.65%	79th
Disposition feeOngoing	2.95%	2.95%	2.00% – 3.50%	0.00%	52nd
Equity share of capitalStructure	59.01%	100.00%	52.74% – 100.00%	−40.99%	44th
Hold periodStructure	10 yrs	10 yrs	8.5 yrs – 10.5 yrs	0 yrs	71st

Closest comparables

Offering	Sponsor	Cap rate	LTV	DSCR	Load	Hold	Match
Griffin Capital Tulsa BTR DST	Griffin Capital Residential Partners Institutional Property Exchange, LLC	5.77%	46.50%	—	5.00%	10 yrs	92%
FREX DB SERIES I DST	Fortress Real Estate Exchange LLC	—	47.10%	—	5.55%	11 yrs	91%
Passco Preston Ridge DST	PASSCO	5.00%	46.93%	2.06x	4.06%	—	89%
BR Amira DST	Bluerock Value Exchange	5.64%	46.17%	1.80x	5.06%	10 yrs	88%
CS1031 Cacema Townhomes DST	Capital Square Realty Advisors, LLC	5.32%	44.39%	2.10x	5.37%	10 yrs	88%
NexPoint Oasis DST	NexPoint Real Estate Advisors IV, L.P.	4.84%	53.05%	1.81x	4.39%	10 yrs	87%
BR Parkview Multifamily DST	BVEX	5.81%	49.45%	1.91x	4.78%	10 yrs	87%
MCG Gainesville FL BTR DST	Madison Capital Group	—	—	1.74x	—	10 yrs	87%

Match score is a normalised distance across the full extracted metric set — asset type, pricing, leverage, cost and structure all weighted equally.

Figures on this page are generated from automated extraction of offering documents and may contain errors or omissions. Verify every metric against the sponsor's offering materials before relying on it for an investment decision.